Chandigarh reduces VAT on petrol

The Chandigarh Administration notified a cut in value added tax (VAT) on petrol and LPG, reducing their prices by Rs1 (US$0.02) per liter and Rs13.50 (US$0.31) per cylinder respectively in the city to cushion the burden after Indias Central Government increased fuel prices. The new rates would be applicable from June 12 according to an official report issued. Earlier, the Central Government had raised petrol, diesel and LPG prices by Rs5 (US$0.12) per liter, Rs3 (US$0.07) per liter and Rs50 (US$1.17) per cylinder. Chandigarh administration reduced VAT on normal petrol from 22% to 20% and abolished 4% VAT on cooking gas. However, the administration did not tinker with VAT rates on diesel fuel. (June 11, 2008)